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AGREEMENT

BETWEEN

THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF

BANGLADESH

AND

THE GOVERNMENT OF THE KINGDOM OF BAHRAIN

FOR THE

AVOIDANCE OF DOUBLE TAXATION

AND

THE PREVENTION OF FISCAL EVASION

WITH RESPECT

TO TAXES ON INCOME

evsjv‡`k †M‡RU, AwZwi³, A‡±vei 16, 2017 10983

The Government of the People’s Republic of Bangladesh and the Government of

the Kingdom of Bahrain desiring to conclude an Agreement for the avoidance of

double taxation and the prevention of fiscal evasion with respect to taxes on

income;

HAVE AGREED AS FOLLOWS:

ARTICLE 1

PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the

Contracting States.

ARTICLE 2

TAXES COVERED

1. This Agreement shall apply to taxes on income imposed by or on behalf of

a Contracting State or its local authorities, irrespective of the manner in

which they are levied.

2. There shall be regarded as taxes on income, all taxes imposed on total

income or on elements of income, including taxes on gains from the

alienation of movable or immovable property.

3. The existing taxes to which the Agreement shall apply are:

(a) in the case of Bahrain:

income tax payable under Amiri Decree No. 22/1979

(hereinafter referred to as ÒBahrain tax”);

(b) in the case of Bangladesh:

the income tax.

(hereinafter referred to as ÒBangladesh tax”).

4. This Agreement shall also apply to any identical or substantially similar

taxes, which are imposed after the date of signature of this Agreement in

addition to, or in place of, the existing taxes. The competent authorities of

the Contracting States shall notify each other of any significant changes,

which have been made in their respective taxation laws.


ARTICLE 3

GENERAL DEFINITION

1. In this Agreement, unless the context otherwise requires:

(a) the term ÒBahrain” means the territory of the Kingdom of Bahrain as

well as the maritime areas, seabed and subsoil over which Bahrain

exercises, in accordance with international law, sovereign rights and

jurisdiction;

(b) the term ÒBangladesh” means all the territory of the People’s Republic

of Bangladesh including the part of the seabed and its sub-soil thereof,

to the extent that area in accordance with international law has been or

may hereafter be designated under Bangladesh law as an area within

which Bangladesh may exercise sovereign rights with respect to the

exploration and exploitation of the natural resources of the seabed or

its sub-soil;

(c) the terms Òa Contracting State” and Òthe other Contracting State”

mean Bangladesh or Bahrain, as the context requires;

(d) the term Òtax” means any tax covered by Article 2 of this Agreement;

(e) the term Òperson” includes an individual, a company and any other

body of persons;

(f) the term ÒCompany” means any body corporate or any entity,

constituted or recognised under the laws of one or other of the

Contracting State, or which is treated as a body corporate for tax

purposes;

(g) the term Òenterprise of a Contracting State” and Òenterprise of the

other Contracting State” mean respectively an enterprise carried on by

a resident of Contracting State and an enterprise carried on by a

resident of the other Contracting State;

(h) the term ÒCompetent authority” means:

(i) in the case of Bahrain the Minister of Finance or his authorized

representative;

(ii) in case of Bangladesh, the National Board of Revenue or its

authorized representative.

(i) the term Ònational” means

(i) in the case of Bahrain, all individuals possessing the nationality

or Bahrain and also any legal person, partnership and association

deriving their status as such from the laws in force in Bahrain.


(ii) in the case of Bangladesh, all individuals possessing the nationality or

citizenship of Bangladesh and also any legal person, partnership and

association deriving their status as such from the laws in force in

Bangladesh;

(j) the term Òinternational traffic” means any transport by a ship or

aircraft operated by an enterprise, which has its place of effective

management in a Contracting State, except when the ship or aircraft is

operated solely between places in the other Contracting State.

2. As regards the application of the Agreement by a Contracting State any

term not otherwise defined shall, unless the context otherwise requires,

have the meaning which it has under the law of that Contracting State,

relating to the taxes to which this Agreement applies.

ARTICLE 4

RESIDENT

1. For the purposes of this Agreement, the term Òresident of a Contracting

State” means :

(a) in the case of Bahrain, and individual who is present in Bahrain for a

period or periods totalling in the aggregate at least 183 days in the

fiscal year concerned, a company or other legal person which is

incorporated or has its place of management in Bahrain, the Kingdom

of Bahrain, and any political subdivision or local or statutory authority

or body thereof; and

(b) in the case of Bangladesh, any person who, under the laws of

Bangladesh is liable to tax therein by reason of his domicile,

residence, and place of management or any other criterion of a similar

nature, and also includes that State or any political subdivision or local

authority thereof.

This term, however, does not include any person who is liable to tax in that State

in respect only of income from sources in that State or capital situated therein.

2. Where by reason of the provisions of paragraph 1 an individual is a resident

of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident of the Contracting State in which

he has a permanent home available to him; if he has a permanent

home available to him in both Contracting States, he shall be deemed

to be a resident of the Contracting State with which his personal and

economic relations are closer (centre of vital interests);


(b) if the Contracting State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home available to

him in either Contracting State, he shall be deemed to be a resident of

the Contracting State in which he has a habitual abode;

(c) if he has a habitual abode in both Contracting States or in neither of

them, he shall be deemed to be a resident of the Contracting State of

which he is a national;

(d) if he is a national of both Contracting States or of neither of them, the

competent authorities of the Contracting States shall settle the

question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an

individual is a resident of both Contracting States, then it shall be deemed

to be a resident of the Contracting State in which its place of effective

management is situated.

ARTICLE 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term Òpermanent establishment”

means a fixed place of business through which the business of an enterprise

is wholly or partly carried on.

2. The term Òpermanent establishment” includes especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for

others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of

natural resources; and

(h) a refinery.

3. A building site or construction, installation or assembly project constitutes a

permanent establishment only if it lasts more than 183 days.


4. Notwithstanding the preceding provisions of this Article, the term Òpermanent establishment” shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of

goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of storage or display;

(c) the maintenance of stock of goods or merchandise belonging to the

enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of

purchasing goods or merchandise or of collecting information for the

enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of

advertising, for the supply of information, for scientific research of for

similar activities which have a preparatory or auxiliary character, for

the enterprise; and

(f) the maintenance of a fixed place of business solely for any

combination of activities mentioned in sub-paragraphs (a) to (e),

provided that the overall activity of the fixed place of business

resulting from this combination is of a preparatory or auxiliary

character.

5. A person acting in a Contracting State for or on behalf of an enterprise of

the other Contracting State (other than an agent of an independent status to

whom paragraph 6 applies) shall be deemed to be a permanent

establishment in the first-mentioned State if :

(a) he has, and habitually exercises, in the first-mentioned Contracting

State a general authority to conclude contracts for or on behalf of the

enterprise, unless his activities are limited to the purchase of goods or

merchandise for or on behalf of the enterprise; or

(b) he habitually maintains in the first-mentioned contracting State a stock

of goods or merchandise belonging to the enterprise from which he

regularly delivers goods or merchandise for or on behalf of the

enterprise; or

(e) he habitually secures orders for the sale of goods or merchandise in

the first-mentioned Contracting State, wholly or almost wholly for the

enterprise itself, or for the enterprise or other enterprise which are

controlled by it or have a controlling interest in it.


6. An enterprise shall not be deemed to have a permanent establishment in a

Contracting State merely because it carries on business in that Contracting

State through a broker, general commission agent or any other agent of an

independent status, provided that such persons are acting in the ordinary

course of their business.

7. The fact that a company which is a resident of a Contracting State controls

or is controlled by a company which is a resident of a contracting State, or

which carries on business in that other Contracting State (whether through a

permanent establishment of otherwise), shall not of itself constitute either

company a permanent establishment of the other.

ARTICLE 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable

property (including income from agriculture of forestry) situated in the

other Contracting State to be taxed in that other Contracting State.

2. The term “immovable property” shall have the meaning which it has under

the law of the Contracting State in which the property in question is

situated. The term shall in any case include property accessory to

immovable property, livestock and equipment used in agriculture and

forestry, rights to which the provisions of general law respecting landed

property apply, usufruct of immovable property and rights to variable or

fixed payments as consideration for the working of, or the right to work,

mineral deposits, sources and other natural resources; ships, boats and

aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct

use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from

immovable property of an enterprise and to income from immovable

property used for the performance of independent personal services.


ARTICLE 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in

that State unless the enterprise carries on business in the other Contracting

State through a permanent establishment situated therein. If the enterprise

carries on business as aforesaid, the profits of the enterprise may be taxed in

the other Contracting State but only so much of them as is attributable to

that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a

Contracting State carries on business in the other Contracting State through

a permanent establishment situated therein, there shall in each Contracting

State be attributed to that permanent establishment the profits which it

might be expected to make if it were a distinct and separate enterprise

engaged in the same or similar activities under the same or similar

conditions and dealing wholly independently with the enterprise of which it

is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be

allowed as deductions of expenses which are incurred for the purposes of

the permanent establishment, including executive and general

administrative expenses so incurred, whether in the Contracting State in

which the permanent establishment is situated or elsewhere, however no

such deduction shall be allowed in respect of amounts, if any, paid

(otherwise than towards reimbursement of actual expenses) by the

enterprise to its head office or any of its other offices, by way of royalties,

fees or other similar payments in return for the use of patents or other

rights, or by way of commission, for specific services performed or for

management, and any other expenses which under the law of that

Contracting State would not be allowed to be deducted by an enterprise of

that contracting State (except in the case of a banking enterprise by way of

income from debt claims on monies lent to the head office of the enterprise

or any of its other offices).

4. Insofar as it has been customary in a Contracting State to determine the

profits to be attributed to a permanent establishment on the basis of an

apportionment of the total profits of the enterprise to its various parts,

nothing in paragraph 2 shall preclude that contraction State from

determining the profits to be taxed by such an apportionment as may be

customary; the method of apportionment adopted shall, however, be such

that the result shall be in accordance with the principles laid down in this

Articles.


5. No profits shall be attributed to a permanent establishment by reason of the

mere purchase by that permanent establishment of goods or merchandise for

the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be attributed to

the permanent establishment shall be determined by the same method year

by year unless there is good and sufficient reason to the contrary.

7. Where profits include items of income which are dealt with separately in

other Articles of this Agreement, then the provisions of those Articles shall

not be affected by the provisions of this Article.

8. Nothing in this Agreement will affect the rights of a Contracting State to tax

the income of an enterprise of the other Contracting State in the first

mentioned Contracting State, where such income is derived form engaging

in the exploration or the production of crude oil or other natural

hydrocarbons from the ground of the first mentioned Contracting State or in

refining crude oil in that Contracting State, in the case of Bahrain pursuant

to Amiri Decree No. 22/1979, and in the case of Bangladesh pursuant to

any identical or substantially similar law.

ARTICLE 8

SHIPPING AND AIR TRANSPORT

1. Profits from the operation of aircraft in international traffic shall be taxable

only in the Contracting State in which the place of effective management of

the enterprise is situated.

2. Income of an enterprise of a Contracting State derived from the other

Contracting state from the operation of ships in international traffic may be

taxed in that other Contracting State, but the tax chargeable in that other

Contracting State on such income shall be reduced by an amount equal to

fifty per cent of such tax.

3. The provision of the preceding paragraphs shall also apply to profits from

the participation in a pool, a joint business or an international operating

agency.


ARTICLE 9

ASSOCIATED ENTERPRISES

1. Where:

(a) an enterprise of a Contracting State participates directly or

indirectly, in the management, control or capital of an enterprise

of the other Contracting State; or

(b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a Contracting

State and an enterprise of the other Contracting State, and in

either case conditions are made or imposed between the two

enterprises in their commercial or financial relations which differ

from those which would be made between independent

enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by reason

of those conditions have not so accrued, may be included in the

profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that

Contracting State and taxes accordingly profits on which an enterprise of

the other Contracting State has been charged to tax in that other Contracting

State and the profits so included are profits which would have accrued to

the enterprise of the first mentioned Contracting State if the conditions

made between the two enterprises had been those which would have been

made between independent enterprises than that other Contracting State

shall make and appropriate adjustment to the amount of the tax charged

therein on those profits. In determining such adjustment, due regard shall be

had to the other provisions of this Agreement and the competent authorities

of the Contracting State shall, if necessary, consult each other.

ARTICLE 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a

resident of the other Contracting State may be taxed in that other

Contracting State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that Contracting State, but if the recipient is


the beneficial owner of the dividends the tax so charged shall not exceed:

(a) 10 percent of the gross amount of the dividends if the

beneficial owner is a company which holds directly at least

10 percent of the capital of the company paying the

dividends ;

(b) 15 percent of gross amount of the dividends in all other

cases.

This paragraph shall not affect the taxation of the company in respect

of the profits out of which the dividends are paid.

3. The term “dividendsÓ as used in this Article means income from

shares, mining shares, founder’s shares, or other rights, not being

debt-claims, participating in profits, as well as income from other

corporate rights which is subjected to the same taxation treatment as

income from shares by the laws of the Contracting State of which the

company making the distribution is a resident.

4. The provisions of paragraph 1 and 2 shall not apply if the recipient of

the dividends, being a resident of a Contracting State, carries on

business in the other Contracting State of which the company paying

the dividends is a resident, through a permanent establishment

situated therein, or performs in the other Contracting State

independent personal services from a fixed base situated therein, and

the holding in respect of which the dividends are paid is effectively

connected with such a permanent establishment or fixed base. In such

a case, the provisions of Article 7 or Article 14, as the case may be,

shall apply.

5. Where a company, which is a resident of a Contracting State derives

profits or income from the other Contracting State, that other

Contracting State may not impose any tax on the dividends paid by

the company, except insofar as such dividends are paid to a resident

of that other Contracting State or insofar as the holding in respect of

which the dividends are paid is effectively connected with a

permanent establishment or a fixed base are situated in that other

Contracting State, nor subject the company’s undistributed profits to

a tax on the company’s undistributed profits, even if the dividends

paid or the undistributed profits consist wholly or partly of profits or

income arising in such other Contracting State.


ARTICLE 11

INCOME FROM DEBT CLAIMS

1. Income from debt claims arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in that other

Contracting State.

2. However, such income may also be taxed in the Contracting State in

which it arises and according to the laws Contracting State, but if the

recipient is the beneficial owner of the income the tax so charged

shall not exceed 10 percent of the gross amount of the income from

debt claims.

3. Notwithstanding the provisions of paragraph 2:

(a) Income from debt claims arising in Bangladesh and paid to the Government of Bahrain, or its Ministries, or the Bahrain Monetary Agency “Central Bank of Bahrain” and their organizations, or agents shall be exempt from Bangladesh tax;

(b) Income from debt claims arising in Bahrain and paid to the Government of Bangladesh, or its Ministries, or to the Bangladesh Bank and their organizations or agents shall be exempt from Bahrain tax;

4. The term income from debt claims as used in this article means income from debt-claims of every kind whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as income from debt claims for the purpose of this Article.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the income from debt claims being a resident of a Contracting State, carries on business in the other Contracting State in which the income from debt claims arises, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the income from debt claims paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.


6. Income from debt claims shall be deemed to arise in a Contracting

State when the payer is that Contracting State itself, a territorial-

administrative unit, a local authority or a resident of that Contracting

State. Where, however, the person paying the income from debt

claims, whether he is a resident of a Contracting State or not, has in a

Contracting State a permanent establishment or a fixed base in

connection with which the indebtedness on which the income from

debt claims is paid was incurred, and such income from debt claims

is borne by such permanent establishment or fixed base, then such

income from debt claims shall be deemed to arise in the Contracting

State in which the permanent establishment or fixed base is situated.

7. Where, by reason of a special relationship between the payer and the

beneficial owner or between both of them and some other persons,

the amount of the income from debt claims, having regard to the

debt-claim for which it is paid, exceeds the amount which would

have been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article shall apply

only to the last mentioned amount. In such case, the excess part of the

payments shall remain taxable according to the laws of each

Contracting State, due regard being had to the other provisions of this

Agreement.

ARTICLE 13

CAPITAL GAINS

1. Capital gains from the alienation of immovable property, as defined

in paragraph 2 of Article 6 or from the alienation of shares in a

company the assets of which consist principally of immovable

property may be taxed in the Contracting State in which such

property is situated.

2. Capital gains from the alienation of movable property forming part of

the business property of a permanent establishment which an

enterprise of a Contracting State has in the other Contracting State or

of movable property pertaining to a fixed base available to a resident

of a Contracting State in the other Contracting State for the purpose

of performing independent personal services, including such gains

from the alienation of such a permanent establishment (alone or with

the whole enterprise) or of such fixed base, may be taxed in the that

other Contracting State.


3. Capital gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the enterprise is a resident.

4. Capital gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that Contracting State. However, in the following circumstances such income may be taxed in the other Contracting State :

(a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in the case, only so much of the income as is attributable to that fixed base may be taxed in the other Contracting State; or

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in the fiscal year concerned in that case only, so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other Contracting State.

2. The term “professional services” includes especially, independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21 salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.


2. Notwithstanding the provisions of paragraph 1, remuneration derived

by a resident of a Contracting State in respect of an employment

exercised in the other Contracting State shall be taxable only in the

first-mentioned Contracting State if :

(a) the recipient is present in the other Contracting State for a

period, or periods not exceeding in the aggregate 183 days in the

taxable year concerned; and

(b) the remuneration is paid by or on behalf of an employer who is

not a resident of the other Contracting State; and

(c) the remuneration is not borne by a permanent establishment or a

fixed base which the employer has in the other Contracting State.

3. Notwithstanding the preceding provisions of this Article,

remuneration in respect of an employment exercised aboard a ship or

aircraft operated in international traffic by an enterprise of a

Contracting State shall be taxable only in that Contracting State.

4. Notwithstanding the preceding provisions of this Article, a

Contracting State shall exempt salaries, wages, allowances, and

perquisites from tax in the case of employees of a designated

enterprise, under paragraphs 1 and 2 of Article 8 herein, of that other

Contracting State provided that the employees are nationals of the

other Contracting State.

ARTICLE 16

DIRECTOR’S FEES

Director’s fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other Contracting State.

ARTICLE 17

ARTISTES AND ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State.


2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15 be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.

3. The provisions of paragraphs 1 and 2 of this Article shall not apply to services of entertainers and athletes if their visit to a Contracting State is supported wholly or substantially from public funds of the other Contracting State.

ARTICLE 18

PENSIONS

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that Contracting State.

ARTICLE 19

GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by a Contracting State or a territorial administrative unit or a local authority thereof to an individual in respect of services rendered to that Contracting State or territorial unit or authority shall be taxable only in that Contracting State;

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and the individual is a resident of that Contracting State who :

(i) is a national of that Contracting State; or

(ii) did not become a resident of that Contracting State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a territorial-administrative unit or a local authority thereof to an individual in respect of services rendered to that Contracting State, territorial-administrative unit or local authority shall be taxable only, in that Contracting State;


(b) However, such pension shall be taxable only in the other

Contracting State if the individual is a resident of, and a national

of that Contracting State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration

and pensions in respect of services rendered in connection with a

business carried on by a Contracting State or a territorial-

administrative unit or a local authority thereof.

ARTICLE 20

TEACHERS

An individual who is or was a resident of a Contracting State immediately

before making a visit to the other Contracting State, and who, at the

invitation of any university, college, school or other similar educational

institution, visits that other Contracting State for a period not exceeding

two years solely for the purpose of teaching or research or both at such

educational institution shall be exempt from tax in that other Contracting

State on his remuneration for such teaching or research.

ARTICLE 21

STUDENTS AND APPRENTICES

1. An individual who is or was immediately before visiting a

Contracting State a resident of the other Contracting State and who is

present in the first mentioned Contracting State solely as a student at

a university, college, school or other similar educational institution in

the first-mentioned Contracting State or as a business or technical

apprentice therein, for a period not exceeding five years from the date

of his first arrival in the first-mentioned Contracting State in

connection with that visit, shall be exempt from tax in that first-

mentioned Contracting State on:

(a) all remittances from abroad for the purposes of his maintenance,

education or training; and

(b) any remuneration for personal services rendered in the first-

mentioned Contracting State with a view to supplementing the

resources available to him for such purposes.


2. An individual who was a resident of a Contracting State immediately

before visiting the other Contracting State and is temporarily present

in that other Contracting State solely for the purpose of study,

research or training as a recipient of a grant, allowance or award from

a scientific, educational, religious or charitable organisation or under

a technical assistance programme entered into by the Government of

a Contracting State shall, from the date of his first arrival in that other

Contracting State in connection with that visit , be exempt from tax in

that other Contracting State on the amount of such grant, allowance

or award.

ARTICLE 22

OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever

arising, not dealt with in forgoing Article of this Agreement shall be

taxable only in that Contracting State.

2. The provisions of paragraph 1 shall not apply to income, other than income

from immovable property as defined in paragraph 2 of Article 6, if the

recipient of such income, being a resident of a Contracting State, carried on

business in the other Contracting State, through a permanent establishment

situated therein, on performs in that other Contracting State independent

personal services from a fixed base situated therein and the right or property

in respect of which the income is paid is effectively connected such

permanent establishment of fixed base. In such case the provisions of

Article 7 or Article 14, shall apply.

ARTICLE 23

MISCELLANEOUS PROVISIONS

Nothing in this Agreement shall prevent the application of a more

favourable tax treatment which might be extended to foreign public

investments under the individual tax laws of the Contracting States.


ARTICLE 24

METHOD FOR ELIMINATION OF DOUBLE TAXATION

1. Where a resident of a Contracting State derives income which, in

accordance with the provisions of this Agreement, may be taxed in the other

Contracting State, the first-mentioned Contracting State shall allow as a

deduction from the tax on the income of that resident, an amount equal to

the income tax paid in that other Contracting State. Such deduction shall

not, however, exceed that part of the income tax as computed before the

deduction is given, which is attributable, as the case may be, to the income

which maybe taxed in that other Contracting State.

2. Where in accordance with any provision of the agreement income derived

by a resident of a Contracting State is exempted from tax in that

Contracting State, such Contracting State may nevertheless, in calculating

the amount of tax on the remaining income of such resident, take into

account the exempted income.

ARTICLE 25

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other

Contracting State to any taxation or any requirement connected therewith

which is other or more burdensome than the taxation and connected

requirements to which nationals of that other Contracting State the same

circumstances are or may be subjected. This provision shall, notwithstanding

the provisions of Article 1, also apply to persons who are not residents at

one or both of the Contracting States.

2. The taxation levied on a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State shall not be less

favourably levied in that other Contracting State than the taxation levied on

enterprises of that other Contracting State carrying on the same activities.

This provision shall not be construed as obliging a Contracting State to

grant to residents of the other Contracting State any personal allowances,

reliefs and reductions for taxation purposes on account of civil status or

family responsibilities which it grants to its own residents.


3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, income from debt claim, royalties and other disbursements paid by an enterprise of a Contracting State to a

resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned Contracting State.

4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly of indirectly, by one or more residents of the

other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned Contracting State are or may be subjected.

5. The provisions of this article shall, notwithstanding the provisions of

Article 2, apply to taxes of every kind and description.

ARTICLE 26

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the

Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may irrespective of the remedies provided by the domestic law of those Contracting States, present his case to the competent authority of the Contracting State of

which he is a resident or if his case comes under paragraph 1 of Article 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

2. The competent authority shall endeavour, if the objection appears to it to

be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limit in the domestic law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual Agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.


4. The competent authorities of the Contracting States may communicate

with each other directly for the purpose of reaching an agreement in the

sense of the preceding paragraphs. When it seems advisable in order to

reach agreement to haven an oral exchange of opinions, such exchange

may take place through a Commission consisting of representatives of the

competent authorities of the Contracting States.

ARTICLE 27

EXCHNGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such

information as is foreseeable relevant for carrying out the provisions of

this Agreement or to the or enforcement of the domestic laws concering

taxes of every kind and description imposed on behalf of the Contracting

States, insofar as the taxation thereunder is not contrary to the Agreement.

The exchange of information is not restricted by Articles 1 and 2.

2. Any infomation received under paragraph 1 by a Contracting State shall

be treated as secret in the same manner as information obtained under the

domestic laws of that State and shall be disclosed only to persons of

authorities (including courts and administrative bodies) concerned with the

assessment or collection of the enforcement or prosecution in respect of

the determination of appeals in relation to the taxes refferred to in

paragraph 1, or the oversight of the above. Such persons or authorities

shall use the information only for such purposes. They may disclose the

information in public court proceedings or in judicial decisions.

3. In no case shall the provisions of paragraph 1 be construed so as to impose

on a Contracting State the obligation :

(a) to carry out administrative measures at variance with the laws and

administrative practice of that or of the other Contracting State;

(b) to supply information which is not obtainable under the laws or in the

normal course of the administration of that or of the other Contracting

State;

(c) to supply information which would disclose any trade, business,

industrial, commercial or professional secret or trade process, or

information, the disclosure of which would be contrary to public

policy.


4. If information is requested by a Contracting State in accordance with this

Article, the other Contracting State shall use its information gathering

measures to obtain the requested information, even though that other State

may not need such information for its own tax purposes. The obligation

contained in the preceding sentence is subject to the limitations of

paragraph 3 but in no case shall such limitations be construed to permit a

Contracting State to decline to supply information solely because it has no

domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a

Contracting State to decline to supply information solely because the

information is held by a bank, other financial institution, nominee or person

acting in an agency or a fiduciary capacity or because it relates to

ownership interests in a person.

ARTICLE 28

DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents

or consular officers under the general rules of international law or under the

provisions of special Agreements.

ARTICLE 29

ENTRY INTO FORCE

1. This Agreement shall be ratified and the instruments of ratification shall be

exchanged as soon as possible.

2. The Agreement shall enter into force upon the exchange of the instruments

of ratification and its provisions shall have effect :

(a) in The Kingdom of Bahrain : for taxable years and periods beginning

on or after 1st January in the calendar year next following that in

which the instruments of ratification have been exchanged;

(b) in the People’s Republic of Bangladesh: for any year of assessment

beginning on or after 1st July in the calendar year next following that

in which the instruments of ratification have been exchanged.

3. Notwithstanding the preceding provisions of this Article, the provisions of

paragraphs 1 and 2 of Article 8 and paragraphs 3 and 4 of Article 15, shall

be applicable to income derived from international air traffic in the

Contracting States as from the beginning of operations.


ARTICLE 30

TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting

State. Either Contracting State may terminate the Agreement, through

diplomatic chanels by giving to the other Contracting State, written notice

of termination not later than the 30th June of any calendar year from the fifth

year following that in which the Agreement enters into force. In such event,

the Agreement shall cease to have effect :

(a) in Bahrain : for any year of assessment beginning on or after 31st

December in the calendar year next following that in which the notice

of termination is given;

(b) in Bangladesh : for any year of assessment beginning on or after 1st

July in the calendar year next following that in which the notice of

termination is given.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto by their

respective Governments, have signed this Agreement.

DONE in duplicate at Manama this 22 day of December 2015 in the English and

Arabic languages, all texts being equally authentic. In the case of divergence of

interpretation, the English text shall prevail.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE PEOPLE’S REPUBLIC OF THE KINGDOM OF BAHRAIN

BANGLADESH

Abul Hassan Mahmood Ali khalid bin Ahmed Al Khalifa

Hon’ble Minister Hon’ble Minister

Ministry of Foreign Affairs. Ministry of Foreign Affairs.

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R U - National Board of Revenue (NBR), Bangladeshnbr.gov.bd/uploads/publications/Avoid_DoubleTaxation_BD_Bahrain3.pdf · 10982 evsjv‡`k †m‡ru, awzwi³, a‡±vei 16, 2017 z